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Enhancing Technopreneurship in AFNR-HEIs

Through Various Techno-Transfer and Immersion Modalities

Jose Tomas M. Cabagay1

1 National Program Manager, AFNR-HRD Program, Philippine Council for Agriculture, Aquatic and Natural

Resources Research and Development

ABSTRACT

This paper presents the accomplishments of the DOST-PCAARRD program implemented from 2008 to 2011 entitled “Enhancing the Demand for Agriculture, Forestry, and Natural Resources Graduates Through Science and Technology” (or AFNR-HRD Program) to address the dwindling enrolment in Agriculture, Fisheries and other Natural Resources (AFNR) curricular programs in state universities and colleges.

Component Project 3 of the program dubbed as "Support to Entrepreneurship

Development and Income Generation in AFNR SUCs" tested five (5) modalities which served as the immersion venues for AFNR students, alumni and farmers/entrepreneurs to apply the technical and entrepreneurial knowledge they have gained from various trainings under Component Project 2 of the program. These were: [1] the Educational Income Generating Projects or E-IGPs; [2] the Technopreneurial Learning Projects or TLPs; [3] the DOST-Academe Technology-Based Enterprise Development or DATBED-like Projects; and [4] the Technology Business Incubation or TBI; and [5] Magsasaka Siyentista (MS) Farms.

Across the country, there were eighty-eight (88) E-IGPs established, three hundred

twenty (320) for TLPs, one hundred eighty-one (181) enterprises for DATBED, three (3) for TBI start-ups, and sixty (60) MS farms that were used for immersing students and graduates.

Of the 17,828 clients trained in Component Project 2 of the program, a total of 11,227

undertook experiential learning in the different modalities for at least one business cycle, broken down as: 7,790 clients for E-IGPs, 709 clients for TLPs, 244 clients for DATBED, 2,481clients for MS, and 3 clients for TBI.

The immersion in the various modalities proved fruitful and rewarding to the various

clients. Aside from the enhancement of their technopreneurial knowledge and skills, clients earned profits (TLPs, DATBED, TBI) wage income or share in profit (E-IGPs) through their involvement in the operation of various agribusiness enterprises. About 80% of the enterprises posted positive net income, setting a good example to clients that self-employment is potentially equal if not better than wage-employment.

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The program was able to establish a total of 592 new agribusiness enterprises and

directly employed 1,236 AFNR students and graduates. There were 203 product-technologies transferred and commercialized under the program – about 99 technologies in crops, 19 in livestock, 57 in fisheries, 5 in forestry, and 23 in other sub-sectors such as biotechnology and organic agriculture. Of the 203 technologies, 48 were in the production of inputs, 56 in the production of fresh produce, 97 in processing and 2 in marketing services.

Just after program completion a total of 514 new entrepreneurs were produced.

Keywords: immersion modalities, educational income generating projects, technopreneurial learning projects, technology business incubator, DATBED, magsasaka siyentista

BACKGROUND

Component Project 3 dubbed as “Support to Entrepreneurship Development and Income Generation in AFNR SUCs” tested four (4) modalities which served as the immersion venues for students and graduates to apply the technical and entrepreneurship knowledge they have gained from various trainings in Component Project 2. These were: [1] the Educational Income Generating Projects or E-IGPs; [2] the Technopreneurial Learning Projects or TLPs; [3] the DOST-Academe Technology-Based Enterprise Development or DATBED-like Projects; [4] the Technology Business Incubation or TBI; and Magsasaka Siyentista (MS) Farms. The E-IGPs, TLPs and DATBED-like projects were classified under Project 3.1 while the TBI was classified under Project 3.2. Component Project 2 activities must first be accomplished before proceeding to Project 3. Immersion activities in Project 3 cannot proceed without first defining in the curricular enhancement how it will be done – trainings required for faculty and clients, training design and learning materials, facilities and equipment requirement, and type of immersion modality. The first batch of project implementers (BU, CvSU, VSU and WMSU) that were approved by the DOST-Execom used the term Income Generating Projects (IGPs) in their business plan proposals to describe the various enterprises that will serve as immersion or on-the-job training venues by their clients. PCAARRD was aware that the DOST-Grants In Aid funding was not primarily meant to earn income hence it proposed to DOST-Execom to rename it Educational Income Generating Projects (E-IGPs) with the principal purpose of functioning as learning venues while at the same time earn income for the universities. It was approved by the DOST-Execom considering also that there might be problems with the COA if this was not done so.

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The Technopreneurial Learning Project (TLP) was coined after re-thinking on the more appropriate terminology for the second batch of project implementers composed of ILARRDEC, HARRDEC, CLARRDEC and CVARRD, UPLB, USEP, ZC4 and ZC5. The term “income” was still inscribed in E-IGP and it might still be misconstrued that its main objective was to principally earn income either for the university or for clients. PCAARRD for the second time proposed to use the term Technopreneurial Learning Projects (TLPs) which was approved by the DOST-Execom for the second group of project implementers. The DATBED is a program that is being implemented by the Technology Adoption and Promotion Institute (TAPI) of DOST. It is an interest-free, non-collateralized micro-lending facility provided by TAPI to accredited SUCs to in-school students to mainly finance the working capital requirements of proposed agribusiness enterprises. It has a set of lending requirements, with the faculty serving as the guarantors of loans, among others. PCARRD adopted this program as an entrepreneurship immersion modality to be tested by three implementers – BU, CvSU, and VSU. The loan character of the DATBED, the faculty guarantee system and parents’ commitments to repay the loan were what differentiate it from E-IGPs and TLPs. There were about 118 enterprises approved and funded under this modality with BU having the highest number of funded enterprises. Component Project 3 provided the enabling environment for the practice of entrepreneurship through immersion in E-IGPs, TLPs, DATBED-Like Projects and TBI Start-ups. The immersion of students, graduates and other clients came in various modes and names such as: On-The-job-Training, Practicum, Field/Farm Practice, NSTP, Plant Practice, Student Internship Program (SIP), Occupational Internship Program (OIP), while others made their Thesis or Special Problem from their exposure to the various agribusiness projects. The Technology Business Incubation (TBI) was designed to be the natural progression of students and graduates who were serious in the pursuit of their entrepreneurship careers and chosen business enterprises after their training and immersion experiences with E-IGPs, TLPs and DATBED-like projects. The main objective of the TBI was to nurture would-be start-ups until they become free-standing enterprises. The TBI being in itself a start-up, must also prove itself to be a viable techno-transfer and commercialization modality. The TBI component was originally intended to be implemented by VSU but their proposal did not make it to the DOST-Execom for approval. The Central Luzon State University succeeded in getting the funding for the TBI after UPLB also did not make it to the level of the PCAARRD Directors’ Council for presentation and approval. Some implementers designed their immersion strategy to include immersing the clients in the fourth modality called the Magsasaka Siyentista (MS) Farms. The MS or farmer-scientists are currently PCAARRD's partners and models in the dissemination and adoption of superior AFNR

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technologies in various farming communities nationwide. This was on top of their immersion to E-IGPs and TLPs to augment their in-campus immersion experiences with the actual business operations of established enterprises.

ACCOMPLISHMENTS

A. IMMERSION OF CLIENTS The program’s clients were: *1+ students, *2+ graduates/alumni; and others clients such as farmers and entrepreneurs. Under the various immersion modalities a total of 11,227 clients were immersed. The E-IGPs immersed the most clients (7,790 or 69%), while the TLPs contributed only 709 or 6%, MS Farms had 493 or 4%, the DATBED-like Projects only 108 or 1% while the TBI has a measly 3 clients immersed (Figure 1).

Figure 1. Number Clients Served by Immersion Modality

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1. Immersion in Educational Income Generating Projects There were 84 E-IGPs, 320 TLPs, 37 MS, 23 R&D, and 181 DATBED-like projects established which served as venues for immersion as shown in Figure 2. Not all of the various clients trained in short courses and curricular enhancements in Project 2 had the benefit of having the practical experiences through immersion in various E-IGPs. Among the major reasons cited and observed were: conflict in class schedules and inability of some students to shoulder their transportation expenses in reporting to immersion project sites. On the overall, the AFNR-HR Program exceeded its target of 5,525 clients to be immersed by 130%. The project implementers with the highest number of immersed clients were: Region II and III (2,918), Region V (1,035) and CAR (791). The project implementers with the lowest number of immersion accomplishments were: Region IV-A (12), Region IV-B (70), and Northern Mindanao (256). Among the benefits derived by clients from immersion in E-IGPs were: payment for their daily labor, share in net income, satisfying their curricular requirements for practicum, farm and plant practice, NSTP, thesis and special problems.

Figure 2. Total Number of Immersion Modalities in the Program

As an immersion modality, the E-IGPs provided the venue for on-the-job training and internship for 6,684 students (Figure 3). A total of 1,762 students were immersed in Regions II and II E-IGPs, 988 in Region V, 892 in CAR, 772 in Region XI, 722 in Region VIII, 626 in Southern Mindanao (Fisheries), 602 in Region IX and 225 in Northern Mindanao (Fisheries). Regions IV-B, IV-A, and I had immersed less than 100 clients each.

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Figure 3. Number of Students Immersed in E-IGPs, by Region

The E-IGPs immersed a total of 868 AFNR alumni. Region IX was on top of the list with 606 graduates immersed or seventy percent of total graduates immersed (Figure 4). In the far distance was CAR with only 122 graduates immersed. Trailing behind were Regions IV-B with 75 graduates, Region V (25), Region VIII (16) and Region I (11).

Figure 4. Number of Graduates Immersed in e-IGPs, by Region

The accomplishment in immersion of other clients composed of farmers and other entrepreneurs was minimal (238) compared to students and graduates. Figure 5 shows that Northern Mindanao (Fisheries) immersed the most number of other clients (75). This was followed by Region IV-B (63), Region V (36), CAR (34), Region IX (22), and 4 each for Northern Mindanao (Fisheries) and Southern Mindanao (Fisheries)

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Figure 5. Number of Other Clients Immersed in e-IGPs, by Region

The comparative accomplishment in immersion is presented in Table 1.

Table 1. Number of E-IGP-Type Enterprises Established and Number of Clients Immersed, by

Region. Region Project Implementers Number

of E-IGPs Number of Clients Immersed

Student Grad Others Total

I Lead Agency: ILARRDEC Partner Agencies: MMSU, DMMMSU, ISPSC, UNP, PSU

2 25 11 0 36

II & III Lead Agency: CLARRDEC & CVARRD Partner Agencies: CLSU, RMTU, PAC, TCA, ISU, QSC, NVSU, CSU, BPSU, BASC

24 1,762 0 0 1,762

IV-A Lead Agency: UPLB 2 4 0 0 4

IV-B Lead Agency: CvSU Partner Agencies: LSPU, SLSU, WPU, BatSU, URS, OMNC, RSU

4 66 75 63 204

V Lead Agency: BU Partner Agencies: BUCAF, BUTC, CBSUA, CNSC, DEBEMESCAT, PSU, SSC

11 988 25 36 1,049

VIII Lead Agency: VSU Partner Agencies: UEP, ESSU, SLSU, NSU

7 722 16 4 742

IX Lead Agency: WMSU Partner Agencies: JRMSC, ZSCMST,

5 602 606 22 1,230

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JHCSC

Southern Mindanao (Fisheries)

Lead Agency: Zonal Center V Partner Agencies: DNSC, SPAMAST, USM, MSU-GS, SKSU-K

11 626 5 4 635

XI Lead Agency: USEP Partner Agencies: USEP-Tagum, USEP-Mabini

5 772 0 0 772

Northern Mindanao (Fisheries)

Lead Agency: Zonal Center IV Partner Agencies: MSU-Naawan 5 225 8 75 308

CAR Lead Agency: HARRDEC Partner Agencies: BSU, ASC, ASIST, IFSU, KASC, MPSPC

12 892 122 34 1,048

T o t a l 88 6,684 868 238 7,790

2. Immersion in Technopreneurial Learning Projects For the 33 TLPs established, 704 total clients were immersed. Region I with 20 TLPs had immersed the most number of students (494, or 84% of total students immersed) while Regions II and III, IV-A, XI and Northern Mindanao (Fisheries) each have less than 30 students immersed (Figure 6). Clients' immersions in TLPs were highly supervised by faculty-mentors just like the case of clients immersed in E-IGPs and DATBED-Like Projects. Exposure to the whole gamut of business operation – from production, marketing and financial management was a must to make experiential learning holistic. The immersions in TLPs were mostly implemented with a client individually managing his/her own enterprise. However, there were a few who handled projects as a group or as a team.

Figure 6. Number of Students Immersed in TLPs, by Region

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There were only 84 alumni immersed in TLPs with Region 49 contributing the most number (49) followed by CAR (20) AND Northern Mindanao (12) as shown in Figure 7.

Figure 7. Number of Graduates Immersed in TLPs, by Region

Only two regions implemented the immersion of Other Clients in TLPs, namely: Northern Mindanao with 34 other clients immersed and Region I with only 3 (Figure 8).

Figure 8. Number of Other Clients in TLPs, by Region Implementers

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The comparative regional accomplishment in immersion in TLPs is presented in Table 2. Table 2. Number of TLP-Type Enterprises Established and Number of Clients Immersed, by

Region. Region Project Implementers/ Partners Number

of TLPs Number of Clients Immersed

Students Grads Others Total

I Lead Agency: ILARRDEC Partner Agencies: MMSU, DMMMSU, ISPSC, UNP, PSU

249 494 49 3 546

II & III Lead Agency: CLARRDEC & CVARRD Partner Agencies: CLSU, RMTU, PAC, TCA, BPSU, BASC; ISU, QSC, NVSU, CSU,

1 29 0 0 29

IV-A Lead Agency: UPLB 29 29 0 0 29

XI Lead Agency: USEP Partner Agencies: USEP-Tagum, USEP-Mabini

20 20 0 0 20

N. Mindanao (Fisheries)

Lead Agency: Zonal Center IV Partner Agencies: MSU-Naawan

1 19 12 34 57

CAR Lead Agency: HARRDEC Partner Agencies: BSU, ASC, ASIST, IFSU, KASC, MPSPC

20 0 20 0 20

T o t a l 320 591 81 37 709

3. Immersion in DATBED-Like Projects There were 107 students immersed in DATBED-Like projects – fifty (50) were implemented in Region V, thirty-one (31) were done in Region VIII and twenty-six (26) in Region I. There were no students immersed in DATBED-Like project in Region IV-B since they catered only to alumni clients (Figure 9).

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Figure 9. Number of Students Immersed in DATBED-like Projects, by Region

For graduate clients, 169 were immersed in DATBED-Like projects (Figure 10). Region IV-B had immersed the most number of alumni (70) while Region V had 65 and Region 1 had 33. Region VIII had only one (1) alumni immersed.

Figure 10. Number of Graduates Immersed in DATBED-Like Projects, by Region

4. Immersion in Technology Business Incubation Projects Immersion was accomplished in the form of incubation in the case of incubatees for the first agri-based TBI in the country located in Region III. Only production type start-ups were planned

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and approved for implementation in year 1. Processing type start-ups were programmed for Year 2 in time for the completion of the repairs, renovation, and equipment procurement at the Food Processing Center of CLSU. Only 3 out of the 53 target for year 1 production-based incubatees were attained.

5. Immersion in Magsasaka Siyentista (MS) Farms

Only four (4) regions employed the immersion of clients in MS Farms. A total of 493 students and graduates were deployed in MS Farms (Figure 11). CAR topped the list with 276 followed by Region IX with 125, Region V fielded 71 while Region I engaged on 21 clients.

Figure 11. Number of Clients Immersed in Magsasaka Siyentista Farms

Figure 12. Immersion of Students, Graduates and Other Clients in Various Agribusiness Projects.

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B. TESDA CERTIFICATION

The TESDA certification improved the credentials of students who had passed the certification. The employed students of ISU through their testimonies informed their faculty that they became competitive than the graduates of other SUCs because of the TESDA NC II certification they got through the program. Only five (5) regions had their clients TESDA-certified after undergoing technical trainings and immersion. NC II Certifications from were issued by TESDA to 386 Region I clients. Region II and III ranked second with 249 certified clients. Region VIII produced only 218 TESDA-certified clients (Table 3). Table 3. Number of TESDA-certified Clients

Region Project Implementers/Partners Number of TESDA-Certified Clients

I Lead Agency: ILARRDEC Partner Agencies: MMSU, DMMMSU, ISPSC, UNP, PSU

386

II & III Lead Agency: CLARRDEC & CVARRD Partner Agencies: CLSU, RMTU, PAC, TCA, ISU, QSC, NVSU, CSU, BPSU, BASC

249

VIII Lead Agency: VSU Partner Agencies: UEP, ESSU, SLSU, NSU

218

T o t a l 20 853

C. RESULTS

The business performances of various immersion modalities were a confluence of many factors such as: the S&T Content; the Project 2 interventions in curricula enhancements, faculty technical and entrepreneurship training module design and actual implementation, design and content of learning materials, training design and actual conduct of trainings for students and graduates; type of immersion modality(ies) adopted; timing of implementation; level of supervision by faculty mentors; benefits and incentives for students and graduates during immersion; and formulation and execution of business strategies in the business plan proposals, among others. The evaluation of business performances of various immersion modalities used measurements indicated in their proposals approved by the DOST-Execom, namely: number of

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business cycles, sales, net income earned and return on investment (ROI) or return on expenses (ROE). Aside from Return on Expenses (ROE) and Return on Sales (ROS), Return on Investment will be used to measure the viability of Educational Income Generating Projects because of the fixed capital investment that was put into their establishment while for Technopreneurial Learning Projects will be measured on their profitability using Return on Expenses and Return on Sales because there were no fixed capital investment involved.

1. Business Performance of E-IGPs There were three main purposes for the establishment of E-IGPs: [1] to serve as venues for immersion of clients; [2] to demonstrate to the clients the viability of E-IGPs source of livelihood and income; [3] to earn additional income for the SUCs; and [4] to allow the students to earn wage income through their involvement (either as interns or hired labor) in the various operations in the E-IGPs. Some of the notable representative E-IGPs in terms of scale of operation, level of investment, S&T Content, earning potential and return on investment are shown in the table below:

Table 4. Business Performance of Sample E-IGPs Name of e-IGP Agency Scale of Operation Production Cycle Net Income

Production of Inputs:

Asexual Pili Seedlings BUCAF 1,832/yr 8 mos 44,150

Rubber Budwood Nursery JRMSU-Tampilisan

0.5 hectare 30,000 seedlings

6 mos 87,000

Biofertilizer BPSU 1,000 bags 2 mos 93,050

Tissue Culture WMSU 6,729 Seedlings 8 mos 168,230

Banana Nursery NVSU 5,000-7,000 per cycle 8 mos 190,000

Banana Nursery QSC 10,600 plantlets 3 mos 212,000

On-Farm Production:

Lakatan Banana Plantation USEP 6 hectares 1 year 2,280,781

Hybrid Rice CLSU 1 Ha. 3 mos 100,659

Spring Tilapia CBSUA 0.30 ha 6-8 mos 132,831

Native Chicken BUCAF 1.3 has; (315 hens, 50 roosters)

6 mos 32,706

Processing:

Coco-Sugar WMSU 858 Kgs 0.5 day 33,915

2. Business Performance of TLPs Only five project implementers had TLP-type projects, namely ILARRDEC, HARRDEC, CVARRD, UPLB and USEP based on the new definition. The objectives of the TLPs were: [1] to enable the

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students and graduates to have the experience of establishing and managing the enterprise of their own/own choice in-campus or off-campus highly supervised by faculty-mentors; and [2] to enable the students and graduates experience real income from projects, not just laborers in the E-IGPs. The table below shows some of the selected enterprises with promising results. The scale of operation was mostly micro to allow more students to be immersed within the limited AFNR-HRDP budget. Table 5. Business Performance of Sample TLPs Name of TLP/ Name of Proponent/ Client Classification/Source of Fund

Agency Scale of Operation Production Cycle

Net Income

Dishrag (Patola) Production – Alphadel Omega, student, (AFNR-HRDP Fund)

MMSU 550 sq.m. 3 months P 1,955

Honey Corn Production – Jonathan Ramos, Alumni, (AFNR-HRDP Fund)

MMSU 1 hectare 3 months P 32,638

Goat Production – Students, ISU (AFNR-HRDP Fund)

ISU 16 head module 7 months P 78, 150

Cream Cheese Production – Kim Dumagco, UPLB Student (UPLB TBI Funds from PCASTRD)

UPLB 160 liters for 4 production runs

12 months P 10,371

Although most projects had small net income earned, their returns on investment were within the industry performance such that when scaled-up they become attractive options to wage employment if graduates did not get employed after graduation.

3. Business Performance of DATBED-Like Projects

Most projects approved under the DATBED-Like Scheme were individual beneficiary recipients, micro-scale at the beginning, hoping that beneficiaries could eventually scale-up after the program and depend on the enterprises as their main source of income. Initial results showed that incomes earned were still at nominal level for most projects but nevertheless the enterprises established proved to be viable. Table 6 shows the performance of selected DATBED-like projects. There were three variants: the DATBED, AFNR-NegosyoDyante of USeP and TechCom of MMSU. Under the AFNR-NegosyoDyante, an applicant can avail of P25,000.00 maximum loan package renewable up to 2 business cycles while the student is still a resident of the university, the parent/guardian serves as co-maker and pays an interest of 10% of the borrowed funds. USeP reserved the right to withhold the academic records (transcript of record, diploma) in the event that the loan had not yet been paid for after graduation. The TechCom of MMSU was adopted from the scheme under the program of CHED with the arrangement that the students return the working capital after each business cycle. The NegosyoDyante got its P400,000.00 fund from the Program. Under the scheme, the students returned the original

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borrowed funds and retained 85% of the net profit. In the case of MMSU, it had expanded its existing DATBED program using AFNR-HRDP funds. Table 6. Business Performance of Sample DATBED-like Projects

DATBED Project/Name of Client/SUC Agency Scale of Operation Production Cycle

Net Income

AFNR-HR FUNDS FOR DATBED PROJECTS:

Ampalaya Production/ Onesimo Resontoc Jr./BUCAF

BUCAF 0.5 ha 2 cycles 12,417.60 876

Hog Fattening/Jonel N. Solano/ BUCAF BUCAF 5 head 2 cycles 3, 242.16 2,500

TECHCOM-MMSU

Hybrid Corn & Rice Production - Arnel Bagasol, 2007 Alumni (CHED-TechCom Fund)

MMSU 0.5 ha each 1 prod’n cycle each

17,187 22,052.76

DATBED-MMSU

Cattle Fattening- Kesim Acosta, BAT MMSU 1 head 6-8 months 10,449.18

Broiler Production- Emerson Garcia, BAT MMSU 300 head 30 days 7,647.65

Cattle Fattening- Christian Floyd Rala MMSU 1 head 6-8 months 5,869.18

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